What Makes a Car Collectible
Cars with historical significance, ones that initiated new technology or raised the bar for consumer anticipations can become collectible, particularly if they are beautiful and rare. Being incredible looking has its advantages. A racing history enhances a car’s allure, as well as association with a respected racer, designer, or builders like Carroll Shelby and Raymond Loewy.
Prior celebrity ownership can also do the reputation some good, particularly if the person is associated with cars, like James Garner, Steve McQueen, and Paul Newman. The most expensive collectible cars unite these attributes.
As a key rule of thumb, if teenaged boys have their picture on their walls, you’re looking in the right direction. When these young men grow up, they want to buy cars that made them happy and excited in their youth.
Car Investing Risks
Just as most investments have fees, so too does having classic cars. This is actual personal property and you’ll owe taxes on it if you sell at a profit. Is your collectible in horrible condition? Restoring a seven-figure car to good condition, basically considered getting an older car to showroom-new condition using original or precise recreations of paint, parts, and bodywork can go over seven figures.
Also, there’s continuing storage expenses, maintenance costs, and insurance. Profits from the actual sale of the car will probably have transaction fees, commissions/consignment fees, and transportation costs since chances are you aren’t going to pull a Bugatti behind a U-Haul.
Buying a new or somewhat new car because you believe it will be collectible someday is chancy. Sure, you could get lucky, but chances are you aren’t going to have the opportunity to buy a cheaper car and expect it to be worth thousands in a moderately short period of time.